Mr. Speaker, the federal budget of last February did contain certain proposals on the payment to compensate for the ending of the Western Grain Transportation Act.
At the time of the budget, the government made very clear its intentions to consult extensively with farm leaders on these proposals so that the program would be as fair and as workable as possible.
In the budget we proposed that land which would be eligible for the $1.6 billion ex gratia payment was that land producing WGTA eligible crops and summer fallow. These provide reasonable approximation of the land base which benefit from the WGTA subsidy. This proposal was taken to farm leaders for discussion.
Through these consultations, farm leaders accepted the government's proposal on eligible acres and agreed that forage not be included. Adding forage crops to the payment base would have significantly diluted the payment.
In the case of who should receive the payment, again we took the government's proposal to pay landlords to farm leaders for discussion. Through consultations farm leaders told us they agreed with the proposal but felt those who rent farmland should also be somehow recognized in the program.
Based on this advice, the application procedures have been designed to ensure that owners and renters reach an agreement on how part of the benefit may be passed on to renters. It is expected that in many instances this will occur through lower farmland rental rates.
Through extensive meetings with farm leaders, the government was able to reach acceptance of the proposals on eligible acres. It was able to address the concerns of farm groups by adding a provision for renters in the application procedures for the program.